10 Questions
Which type of tax is levied directly on an individual or entity's income?
Income tax
What is the scope of agricultural income as per the Income-tax Act, 1961?
Income from farming and related activities
Which term refers to the period for computing income chargeable to tax under the Income-tax Act, 1961?
Assessment year
What is the main difference between direct and indirect taxes?
Direct taxes are levied on income, while indirect taxes are levied on transactions.
When would income of the previous year be assessed to tax in the previous year itself?
When there is an advance tax payment
What does Article 366(28) of the Indian Constitution define as 'Taxation'?
Imposition of any tax or impost, whether general or local or special
What is the main difference between direct taxes and indirect taxes?
The burden of direct taxes cannot be shifted, while the burden of indirect taxes can be shifted.
What are the two types of taxes mentioned in the text?
Direct taxes and Indirect taxes
Why are taxes levied according to the text?
To meet the common welfare expenditure of the society
Which type of tax is Goods and Services Tax (GST)?
Indirect tax
Test your understanding of tax concepts and income-tax laws such as types of taxes, direct and indirect taxes, computation of total income, and important terms used in the Income-tax Act, 1961.
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